The APAC Automotive Telematics Market, By Vehicle type (Commercial and Passenger), By Application (Infotainment, Safety, Navigation and Diagnostics), By Technology type (Embedded, Tethered and Integrated/ Smartphone) By Channel type (OEM and Aftermarket)and by Country (China, Japan, South Korea, India, ASEAN and Oceania) - Global Forecast to 2027”, is expected to be valued at US$ 32,875.7 million by 2027, exhibiting a CAGR of 14.8% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Automotive telematics is a method of monitoring vehicle by combining onboard diagnostics with a GPS system. In other words, telematics is a piece of technology of sending, receiving, and storing information using telecommunication devices. Telematics is used in many applications namely fleet management, vehicle tracking, intelligent vehicle technologies, auto insurance, container tracking, etc. Automotive telematics uses telecommunications integrated with informatics for application in vehicles and to control vehicles on the move. Moreover, GPS technology is integrated with computers and mobile communication technology in automotive navigation systems. Systems such as automatic driving systems, driving assistance systems, vehicular emergency warning systems, global positioning system (GPS) navigation, and wireless safety communication have been created by an automotive telematics system.
The APAC automotive telematics market was valued for US$ 13,644.7 Mn in 2019 is expected to exhibit a CAGR of 14.8% % during the forecast period.
Emergence of a new revenue model is expected to boost the APAC automotive telematics market growth during the forecast period
Many original equipment manufacturers (OEMs) have created new business models to complement their existing car marketing model. These manufacturers are investing significantly in telematics to seize untapped potential in the market. Moreover, customers have started signing up with vehicle manufacturers for a connected service over three or more years. This has become a revenue source for OEMs. Wireless carriers have started to introduce services that can take advantage of their next-generation networks. In the near future, they are expected to pursue an increasingly aggressive strategy of services rollout, including location-based services. Thus, these factors are expected to propel the APAC automotive telematics market growth over the forecast period.
Rising need for advanced technology can provide lucrative growth opportunities in the near future
There is a high demand for wireless connectivity among consumers and automotive manufacturers, in order to wirelessly connect digital car capabilities. Telematics technologies will be required by digital cars thereby witnessing increased demand among passengers for a variety of applications and services. Moreover, the widespread use of this technology in emerging economies is expected to offer major growth opportunities for market players.
Major challenges regarding privacy concerns and lack of awareness among consumers are expected to hinder the APAC automotive telematics market growth over the forecast period
The low range utilization of telematics technologies and low technical awareness among consumers are factors restricting the development of the automotive telematics market. Furthermore, privacy concerns emerging from the use of telematics coupled with potential exposure to sensitive company data are expected to hinder the APAC automotive telematics market growth over the forecast period.
The telematics industry is expected to bring major transformation in the automotive sector and introduce intelligent traffic systems in emerging economies such as India. This, in turn, will help in live traffic updates, real-time positioning, parking management, tracking, and reducing road accidents. Developed countries such as Germany and the U.S. have already implemented this technology, while the Indian automotive sector is expected to deploy this in the near future.
Consumers in the region are expected to prefer smartphones for using telematics solutions rather than telematics hardware. Chinese consumers prefer embedded solutions that come from the factory-installed in their vehicles. However, during the next seven years, the country’s motorists will increasingly embrace systems that are based on consumer electronics (CE) and wireless devices such as smartphones as these solutions are set to take the lead in the country’s telematics market by 2020.
Automotive OEMs are laying emphasis on embedded telematics solutions that are affordable to common consumers. The embedded telematics market is expected to witness decrease in the average price in the near future and the trend is expected to continue during the forecast period. Though the price of embedded telematics is decreasing, it's still considered as an expensive telematics technology than tethered and smartphones.
Automotive telematics industry is moving towards Big Data connectivity for robust and reliable information storage. For instance, Japan is planning a single national automotive big data platform from 2020. According to this plan, all vehicle-related information will be integrated into a single platform. The access to this data platform will be restricted. Government of Japan plans to charge fees to the public for accessing the data platform.
Key players operating in the APAC automotive telematics market are Denso Corporation, Panasonic Corporation, Clarion, Masternaut Limited, Continental AG, Qualcomm Technologies, Inc. LG Electronics, Harman International Industries, Inc., Trimble Inc., and I.D. Systems.
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